Tell me more ×
Answers OnStartups is a question and answer site for entrepreneurs looking to start or run a new business. It's 100% free, no registration required.
up vote 1 down vote favorite

I think this forum is appropriate for the following question, but if not, I am happy to be directed elsewhere.

For startup business planning purposes, I am wondering if anyone here has heard of a company with high volumes of transactions being able to negotiate down the level of interchange fees they pay?

More simply put, does Amazon pay the same fees for credit/debit card processing that Joe the local retailer does? If not, how much flexibility is there in the fees?

I greatly appreciate any thoughts.

share|improve this question

1 Answer

up vote 1 down vote

Interchange is set by issuing members of the card associations (Visa and MasterCard), and the rates, fees and guidelines of interchange do not vary on an individual merchant basis; even if your name is Amazon.com.

However, I think you may be referring to thresholds. For example, Visa has three thresholds where if a (retail or supermarket) merchant has enough processing volume, they will qualify for lower interchange. These rates are published in Visa's interchange fee schedule that's available on their Web site. Look at page five for required annual transaction minimum, volume, etc.

share|improve this answer

Your Answer

 
discard

By posting your answer, you agree to the privacy policy and terms of service.

Not the answer you're looking for? Browse other questions tagged or ask your own question.